ELLA Policy Brief: Land Use Planning for Extractive Industries

Abstract

Because of the potential for negative environmental and social impacts,
extractive industries are often viewed as posing a threat to more
traditional livelihood activities, such as agriculture or raising
livestock, and even to the development of more value-added or service
orientated economic sectors, like tourism. Competing views about the
best use of land can also fuel social conflict. This Brief presents land
use planning as a tool to mitigate these risks. It describes the basic
steps in land use planning, explains the extent to which five Latin
American countries are using the methodology, and draws out lessons from
the region’s experiences that may be useful for other countries.

Key Lessons:

•In Latin America, land use planning has not driven away FDI; on the
contrary, it has probably reduced risk in the eyes of potential
investors.

•An adequate legal framework with strong political commitment and
institutional capacity to integrate land use planning tools into
national planning is crucial to enhance land use policy and achieve good
results. Designating specific agencies for land use planning and
assuring inter-institutional coordination have led to success in some
countries.

•Some countries have successfully assured multi-stakeholder
participation in the planning process, often facilitated by a
decentralised approach to land use planning.